03-10-14 Community Investment - Laserfiche WebLink

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COMMUNITY INVESTMENT MARCH 10, 2014 3:30 P.M. Committee Present: Gavin Ferlic, Valerie Schey, Henry Davis, Derek Dieter Other Council Present: Tim Scott, Dr. Fred Ferlic, Dr. David Varner, Oliver Davis, Karen White Others Present: Scott Ford, Jitin Kain, Cecil Eastman, John Murphy, Eric Segal, Don Fozo, Brad Toothaker, Rich Deahl, Chris Fielding, John Voorde Agenda: 1. Bill No. 15 -14 Approving Resolution South Bend Economic Development Commission, Target Area (Hill & Colfax) 2. Bill No. 16 -14 Approving Resolution South Bend Economic Development Commission, Target Area (LaSalle Hotel) 3. Bill No. 14 -18 Designating Abatement (10 Yrs.) 237 N. Michigan St. —Great Lakes Development 4. Bill No. 14 -17 Designating Abatement (10 Yrs.) Noble Americas South Bend Ethanol LLC. Gavin Ferlic, Community Investment Committee Chair, with a quorum present opened the meeting recognizing Scott Ford, Director of Community Investment Department. Scott addressed the Committee asking if bills 16 -14 and 14 -18, both dealing with the LaSalle Hotel project could be presented and considered together. Gavin granted permission. Scott briefly described the project describing it as a complicated public /private collaboration to restore the LaSalle to an apartment building having 59 units and commercial /retail space on the first two floors. He said the City owned property vacant for 10 years and underutilized for two decades before that now could be returned to the tax rolls, continuing recent investment momentum in the Central Business District. Part of the public /private collaboration was the agreement by the City to offer a tax abatement. To do a abatement the Council was being asked on bill 16 -14 to approve the LaSalle site as eligible for abatement. Bill 14 -18 would follow asking Council's approval of a 10 year abatement schedule tailored to be the project. The project and process involved was described in detail by Rich Deahl, an Attorney representing the developer, Great Lakes Development. Further details were provided by Brad Toothaker, the principal of Great Lakes. Basically the $9 million dollar project would ask the City to contribute $1.8 million dollars to the project. The benefit to the City would be the re -use of significant downtown building, jobs to repurpose the building, jobs to service the building and additional assessed value among others. In the public portion, Eric Segal, Carol Davis and Don Fozo spoke urging Council approval. During the Council portion Henry Davis asked whether the jobs created would use local labor. Brad Toothaker pledged 75% of the project would be local. Not quite satisfied, Henry moved for no